H.S.

Dillon Presidential Special Envoy for Poverty Alleviation

INCREASING UNCERTAINTY View from Jakarta

Positive growth momentum Democratization Growing domestic markets Macro stability Decentralized resource allocation Transparency Checks-and-balances on abuse

The Growth Momentum

 Early warnings of a seachange? Export demand for commodities in decline Investor uncertainty weakening currency Consumption-driven growth, but unemployment & poverty have remained high Dual Economy resurrected Threat of demographic boom turning into a bomb!

Clouds on the Horizon

 The poor, near poor, vulnerable constitute 40% of the population Growing social exclusion Widening inequality Neglected agriculture still home to majority Low labor productivity Crumbling infrastructure Deteriorating social services Environmental costs of growth are soaring Declining living standards Ersatz structural transformation

Quality of Growth

 Creation of meaningful employment while moving up the value chain; Creating a robust green economy; Positioning to take advantage of the regional free trade; Realizing economic structural transformation; Ascertaining that demographic 2025 2035 doesnt bomb

Challenges

 New consciousness: fellow travelers Invest in people

Supply side: proper training and education Demand side: creating meaningful employment opportunities

Innovation to close digital divide Revitalize smallholder agriculture as foundation for inclusive growth
Employment opportunities Environmental conservation Reducing food import bill

Governance reform across all walks of life

Back-to-Basics

 Paradigm shift to People-driven Sequencing of quality infrastucture Incentives to enhance competitiveness - PrivatePublic-People Partnerships Find new niches, with higher value-added

Way Forward

 Keiretsu: become the market leader by working with your stakeholders Kaizen: continuous improvement Forge Private-Public-People partnerships to realize the triple bottom-line Build brand loyalty by being a leader in virtuous business practices and CSR to gain competitive advantage amidst shifting realities

Business in the Lead

Merdeka!